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Homework 3 ethical issues

identify ethical issues, conflict of interest, noncompliance with corporate policies and procedures in the Enron Case.

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The most significant fraud case in the United States was the case of Enron. The energy/services company was found to have hid debt from investors and creditors over a three-year period. Three areas Enron had issues in reporting were ethics, morals, and accounting. This case was significant in shaping financial regulations today. There were many conflicts of interest involved in this case, which pushed many accounting standards boards to strengthen accounting practices such as the Sarbanes Oxley Act. This was just one of many fallouts of the first massive misstatement of accounting documents scandal. The Enron case consisted of misrepresentations of financial documents, ethical issues, and conflicts of interest. The key concept of the case was Enron using special purpose entities to hide debt.

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